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As Minnesota fights fraud, continuity of care sees disruptions

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Adobe Stock via Minnesota News Connection

Minnesota lawmakers heard testimony Sept. 9, 2026, about the domino effects felt by people closely tied to human service programs as the state combats fraud.

Minnesota lawmakers heard testimony Wednesday, Sept. 9, about the domino effects felt by people closely tied to human service programs as the state combats fraud.

The Senate Human Services Committee hearing included examples from patients and care professionals who detailed service disruptions. A consistent topic was revalidations of medical providers who receive Medicaid reimbursements. The federal government threatened to withhold $2 billion in funding for the state if it did not quickly double-check the status of providers with paperwork concerns.

Addyson Carpenter, a Red Wing resident who depends on home-based disability services and serves as chair of the Minnesota Council on Disability, said the administrative logjam has been a nightmare.

"My life is still spent going back and forth to clinics, emergency departments and hospitals. Being without nursing affects my ability to be a parent, to work, to spend time with my family, to participate in my community, to advocate for the things I'm passionate about and even to make ordinary plans," Carpenter explained.

Department of Human Services leaders said they hear the concerns and are doing their best to mitigate service delays but stressed they were given a five-month timeline by the Trump administration for a process which would normally take much longer. The Centers for Medicare and Medicaid Services has avoided public comments on Minnesota's efforts, with state officials suggesting a general lack of clarity from the feds further complicates the situation.

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Joel Bakken, executive director of the nonprofit Solutions Behavioral Healthcare Professionals, which provides autism services and assists with mental health case management, told the panel despite his team quickly following up on requests, the process is flawed with faulty information, leaving legitimate providers in a bind.

"If the goal is to reduce access to legitimate, high-quality autism services in Minnesota, the current revalidation system is accomplishing exactly that," Bakken testified.

Last session, Minnesota lawmakers made several moves to prevent future fraud following high-profile cases but those who testified said the state is not focused enough on current impacts for vulnerable populations.

Meanwhile, it is expected bills to penalize negligent state workers will be reintroduced next year. It is likely to draw pushback from labor unions who worry about losing due process rights and rank-and-file state employees taking too much of the blame.

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